Domestic

Ex-Pres. Lee's Asset Managers Detained, Face Arrest

The prosecution has sought an arrest warrant for the chief of a subcontractor of auto parts company DAS for his alleged embezzlement of company funds to create a slush fund.

The Seoul Central District Prosecutors' Office on Tuesday requested the warrant for Lee Young-bae, who is known to have managed assets of former President Lee Myung-bak.

The subcontractor chief is suspected of embezzling company funds to create a slush fund worth five billion won. The prosecution suspects the slush fund is linked to the former president.

Prosecutors also took Lee Byung-mo, the executive secretary of the Cheonggye Foundation, into custody on the charge of destruction of evidence. Lee is known to have long worked for the former president, mainly taking care of assets and property.

Lee is suspected of disposing of ledgers that apparently had detailed records of the ex-president's financial accounts, possibly created under borrowed names, and their transactions.